Economic Growth in the USSR 1961–1987: Why did the Rate Fall?

Economists are far from unanimous with regard to the role of the agricultural sector in early stages of economic development, but most agree that the agricultural sector can make certain contributions to the process of development. So far, little effort has been devoted to empirical studies in this area. An analysis of the Taiwan experience is pertinent because considerable success has been achieved, both in agricultural and in general development in the post-war period, despite limited resources, unstable prices of agricultural exports and a high ratio of population increase (3.6% per year). A UN study indicates that the average annual growth rates of GNP and national income were 6.9% and 6.1 % respectively during the period 1954-60. In the same period the per capita growth rate of national income was 2.7 %. Among Asian countries, only Japan exceeded these rates of economic growth.1 The main objective of this paper is to examine one aspect of agriculture's contribution-the contribution-to Taiwan's economic development in the post-war period. A factor is made if agriculture transfers resources to other sectors, and these resources are productive factors.2 There has been a tendency for countries in the process of development to underestimate the potential contribution made by their own agricultural sector. In considering the contribution of agriculture, Simon Kuznets points out an element of ambiguity: Since any sector is part of an interdependent system represented by the country's economy, what a sector does is not fully attributable or credited to it but is contingent upon what happens in the other sector, and perhaps also outside the economy.

For the first time since independence, in a nation founded in large part on the rejection of a fixed nobility determined by birth and perpetuated by inheritance, America is paving the way for the creation of dynastic family wealth. Abolition or evisceration of the Rule Against Perpetuities in over half the states along with the likely repeal of the federal estate tax mean that there soon will be no obstacles to creating large pools of wealth that will insure lavish incomes to lucky heirs for generations without end. The timing of these legal changes could hardly be worse. Marshaling innovative economic data extending back centuries, Thomas Picketty convincingly argues that the relatively egalitarian incomes enjoyed in developed economies from the end of World War II until around 1980 were an aberration and that we are in the process of returning to the historical norm of much greater income and wealth inequality. The driving force is the return to a world in which the rate of return to capital (r) exceeds the growth rate of national income (g) — another historical norm temporarily abrogated during the 20th century. The wealthy hold an extremely high fraction of national wealth, and when returns to that wealth exceed the growth rate of national income, their relative economic power (and all that goes with that) increases proportionally. The main contribution of this article is, unhappily, to explore reasons that this revival of unending inherited wealth is of even greater concern than previously thought. First and foremost, the savings rate to a significant degree will be set by the dead hand control of those creating perpetual dynastic trust. In order to insure that trust assets keep up with income and beneficiary class growth, settlors will need to mandate very high savings rates for trust income. In the long term excessive savings (in excess of the “golden rule” savings rate), perhaps surprisingly, can actually retard the growth of consumption. In the shorter term, in a well-known phenomenon called the “paradox of thrift,” high savings rates can cause recessions, make them more severe, and increase their duration. Second, beneficiaries of dynastic trusts lack the power to dissipate the pools of family wealth that provide their high incomes. Prodigal children’s spending of principal is a powerful force for reducing inequality and increasing socioeconomic mobility. When not barred from doing so, descendants’ ability to sell trust assets to fund even more lavish lifestyles means that they will buy copious goods and services from those with lower incomes and less wealth. Thus perpetual dynastic family wealth thus imposes real social costs. This article recommends the conventional solution to such negative externalities: calibrated taxation of the anti-social behaviors. Instead of reinstating the Rule Against Perpetuities, this article instead suggests imposing perpetuities taxes on dynastic trusts with rates set, as closely as possible, to equal the costs imposed in terms of lower growth; more frequent and sharper business cycles; higher inequality; and lower socioeconomic mobility.

This paper evaluates the impacts of fiscal consolidation programmes and their composition on the growth rate of national income for Indian economy. More specifically the study tries to address two questions that is, composition of consolidation and its resultant impact on growth rate of income and the relative desirability of alternative sources of deficit financing that is, internal versus external borrowing. The study employed time series data from 1990–1991 to 2017–2018 and used the technique of ordinary least square and generalized method of moments. The study finds that, in long run, fiscal consolidation need not be necessarily recessionary in nature. Moreover, the composition of consolidation was found to have a significant impact. The study could not extend empirical support in favour of back‐loaded (spending financed) consolidation design as has been established for advanced economies. Moreover the study could not establish the negative impacts of revenue funded (both tax and non‐tax) fiscal consolidation on the growth rate of economy. The study documented that it is desirable to target expenditures such as subsidies, transfers and interest payments to infuse more discipline. A judicious mixture of both spending cuts and revenue increase may be a better strategy to consolidate in order to have better returns. The study highlighted that the external source of deficit financing is always costlier against the internal borrowings. The study noted that it is imperative on part of policymakers to shift their focus from quantity to the quality of deficits and the resultant consolidation programmes.

The general rule is infallible, that, when by increase of money, expensive habits of life, and taxes , the price of labour comes to be advanced in a manufacturing and commercial country, more than in those of its commercial competitors, then that expensive nation will lose its commerce, and go to decay, if it doth not counterbalance the high price of labour, by the seasonable aid of mechanical inventions … Nottingham, Leicester, Birmingham, Sheffield , &c. must long ago have given up all hopes of foreign commerce, if they had not been constantly counteracting the advancing price of manual labour, by adopting every ingenious improvement the human mind could invent. T. Bentley, Letters on the Utility … of … Machines to Shorten Labour , 1780 This book is about a historical problem: why did the Industrial Revolution happen in Britain, in the eighteenth century? Theories of economic development emphasize technological change as the immediate cause of growth, and that was surely the case for industrializing Britain. The steam engine, the cotton spinning machinery, and the manufacture of iron with coal and coke deserve their renown, for invention on this scale was unprecedented, and it inaugurated an era of industrial expansion and further technological innovation that changed the world. Other features of the Industrial Revolution (rapid urbanization, capital accumulation, increases in agricultural productivity, the growth of income) were consequences of the improvements in technology.

How can we provide a good quality of life and productive work for the seven hundred million to one billion people (10 to 14 percent) of the world's seven billion people who are poor or living on no more than $1 (or $1.25) a day? Economic growth is the most important factor contributing to poverty reduction. Figure 6-1 shows that, for ninety-nine developed countries (DCs) and less developed countries (LDCs), the growth rates of national income per capita for 1950 to 1999 are closely correlated with the growth of income per capita of the poorest 20 percent. The country you live in, more than any other fact, determines your position within the world's economic class system. Branko Milanovic (2002b:78) indicates that 88 percent of total world inequality in 1993 results from between-country inequality, 2 percent from within-country inequality, and 10 percent from an overlap between intercountry and intracountry inequality. Still, whereas the ratio of between-country to within-income inequality increased globally from 1820 to 1960, from 1960 to the present, this ratio has fallen back slightly to its level in the 1940s (Firebaugh 2003:23–30). Information Sparsity Gary Fields (1994:87) finds it regrettable that standard studies of country development provide great detail about macroeconomic conditions and the balance of payments without providing “information on who has benefited how much from economic growth and…who has been hurt how much by economic decline.” Estimates of income distribution in most developing countries are, at best, approximations of the underlying distribution we wish to measure. Despite efforts since the early 1970s to investigate income inequality, these data are weaker than national income statistics.

Previous work shows that higher levels of education quality (as measured by international student achievement tests) increases growth rates of national income. This paper begins by confirming those findings in an analysis involving more countries over more time with additional controls. We then use the panel structure of our data to assess whether the mechanism by which education quality appears to improve per capita income levels is through shifting the level of the production function (probably not), through increasing the impact of an additional year of education (probably not), or through increasing a country's rate of technological progress (very likely). Mortality rates complement income levels as indicators of national well-being and we extend our panel models to show that improved education quality increases the rate of decline in infant mortality. Throughout the analysis, we find a stronger impact of education quality and of years of schooling in open than in closed economies.

The effects of education quality on income growth and mortality decline

India’s industry is at a crossroads today. Its IT sector is booming. Its global markets are expanding. The manufacturing and service sectors are bearing the impact of IT expansion. Yet the traditional industries and agriculture are yet to mirror the overall growth. The rural sector has reaped little or no benefit from the high growth rate of national income (exceeding 8 per cent). Goldman and Sachs predicted in February 2007 that this high growth rate is likely to continue for the next three decades or more. However, India has to implement some more appropriate to openness in world trade and competitive efficiency and transparency. Three types of strategies are needed in particular. One is to develop and expand the incentive system for export-sensitive industries so that they can compete more easily in the world markets. On the domestic front new markets have to be fostered and developed. Second, the IT sector, with its software network and various ‘outsourcing’ services sold abroad, needs to adopt strategies that will sustain and improve competitive and comparative advantage in the world market. As in the other NICs (newly industrializing countries) of Southeast Asia, also known as growth miracle countries, India’s IT sector has to actively pursue a strategy of technology diffusion to other sectors, such as manufacturing and services like retailing, real estate development and rural development. Finally, India has to look for new market entries on both domestic and international fronts. Expanding export markets and developing new industries for the domestic economy are very critical to maintaining the high growth rate of the Indian economy achieved so far. The growth impact of spillover technology and externality effects have been strongly emphasized by modern growth theorists like Lucas (1993), Romer (1990) and others.KeywordsProductivity GrowthComparative AdvantageSpillover EffectPhysical CapitalTechnology DiffusionThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Business management techniques, procedures, and services can impact the overall economic success of veterinary practices. Gross practice income and income growth rate are two important metrics for gauging practice economic well-being. Practices with higher economic growth rates have been associated with utilization of specific business management techniques, including the frequency of updating prices and the employment of a business manager. Every practice has a brand, or perceived value by the client base, and practices can generate a long-term plan to capitalize on competitive advantages. Providing convenient client services and actively communicating with clientele promotes economic success.

The object of research is the tourism industry of Ukraine. One of the most problematic places is the lack of world-class tourism resources and the inconsistency of tourism policy, limiting the growth rate of the tourism industry. Cluster analysis and modeling of the growth rate of national income from tourism activities are used. The place of Ukraine in the tourist space of Europe is determined. It is emphasized that the national business environment does not contribute to the development of the tourism sector, the level of security in the country has a negative impact, and the tourism sector in Ukraine is not considered a priority. The competitive advantages of Ukraine are the assessment of human resources, the labor market and the protection of health and hygiene. In general, the prerequisites for the proper development of tourism are not sufficiently used in Ukraine. The effectiveness of the functioning of the European tourist space, including Ukraine, is investigated, and significant regional differences in the magnitude of the increase in national income from tourist activities are revealed. In particular, it is noted that the leaders in income received in 2017 are countries such as Cyprus, Malta, Ireland, Luxembourg, Latvia and Lithuania, which received in 2017 approximately 250 million USD income from the tourism industry. Most countries of the European tourist area (Great Britain, the Netherlands, France, Spain, Italy, Germany, Austria, Greece, Denmark, Portugal, Finland, Sweden, Belgium, Bulgaria, Poland, Romania, Slovakia, Slovenia, Hungary, Croatia, Czech Republic) average had a national income growth from the tourism industry of 170 million SUD. It is determined that Ukraine, in terms of the efficiency of the tourism industry, occupies the last place in the European tourist space (8 million USD of increase in national income from the tourism industry). By determining the competitive advantages and disadvantages of the development of tourism in Ukraine, it is possible to substantiate the foundations of tourism policy in accordance with the national characteristics of the development of the tourism industry of Ukraine.

The properties of income-to-price ratios in asset markets have potentially far reaching implications for understanding investor behavior. Prevailing levels of commercial real estate (CRE) capitalization rates, similar to price/earnings ratios for stocks and owner equivalent rent-to-price relatives for houses, may foretell future investment returns and income growth rates. In CRE capitalization rate models, rent growth rates often proxy for the net operating income (NOI) growth rates. Empirical studies of capitalization rate predictive powers produce inconsistent results that may be due either to the use of these rent growth proxies, model misspecification, or both. We use a novel approach for generating NOI growth rate estimates that involves combining survey rent and the expense growth rates for U.S. apartments. Our GARCH analysis of the capitalization rate spread process using the estimated NOI growth rate produces theoretically consistent results. Importantly, we demonstrate efficiency gains from using our NOI growth rate estimates relative to traditional rent growth rate.

The purpose of this chapter is to present basic ideas, views, and interpretations of intensive modern economic growth in economic history and economics theory. Periods of accelerated economic growth in the contemporary dual system of the world economy are primarily associated with the processes of industrialization and development of the capitalist market economy in peripheral countries and the fast-paced innovativeness of industrial and post-industrial economies of developed countries. A review of the literature shows a large diversity of views of economic theoreticians on the possibilities, mechanisms, and effects of accelerating economic growth. Phenomena associated with spectacular high rate of economic growth are defined as economic miracles. The industrial revolution, technological progress, specialization, and concentration of manufacturing processes as well as the rapid accumulation of capital caused an increase in the productivity of production factors not seen earlier in the history. Industrialization was, therefore, a necessary condition for the occurrence of economic miracles on the path of the historical development of capitalism. A result of the literature investigation is a proposal of an economic miracles classification which could be used for the description and interpretation of each identified case.

Urban public pension, replacement rates and population growth rate in China

Detailed data on the steady rise in spending on education in all nations throughout the world have already been cited in the preceding sections. The reasons for this trend were also examined, and on the basis of available data, the conclusion was formulated that the relatively more rapid increase in spending compared with the growth rate of national income will inevitably slow down in time.

Few subjects are of greater interest to economists and policy makers than the importance of the various sources of economic growth. The most far-reaching study on this topic to date is Edward F. Denison's estimates of the average annual importance to the growth rate of national income of a wide range of identifiable sources of growth (4). This note describes a second approach-one that may be for most purposes, more meaningful and relevant. This alternative approach estimates the importance of the various sources of growth to the percentage change in national income that occurred during the entire period under consideration.